Reminiscences of a Stock Operator - Book Report/Review Example

Reminiscences of a Stock Operator Summary First published in 1923, Reminiscences of a Stock Operator is one of the books that analysts highly recommend for investment matters. Through the many generations that this book has existed, many readers have found that it has a lot of vital information concerning investment and marketing and it is the reason why many teachers still use it in teaching their students. This book largely covers a fictionalized account of the life of Jesse Livermore who is one of the greatest speculators of the early years. This text shows how he undergoes ups and downs in different business activities before he manages to save 100 million dollars before his death. Renamed as Livingstone in this book, Livermore starts betting at a very tender age in matters concerning the rise and fall of stock prices and also takes part in other trading activities as well. Livermore continue taking part in betting until he becomes mature enough but his fellows become jealous of his success in the betting game and they kick him away (Lefevre & Markman, 2009). Many people envy the way Livermore has talent in understanding the trend of the stock prices. As soon as Livermore discovers that he has luck in betting and predicting the stock prices, he starts taking part in the prediction of stock prices in large companies in New York. At first though, he finds it difficult to cope with the experts who have been in this game before him but he does not lose hope. After so many attempts in different stock markets all over America, he learns that to perform well in the business industry and especially in investment trading, one needs to buy from a market that is performing exemplary well and sell to a market that is performing poorly (Lefevre & Markman, 2009). In his activities, Livermore puts it that it is important to study the market trend first before taking part in any activity for this allows one to know how to set his strategies well. Livingstone as the book refers to him, tries his luck in different businesses to try out his success. At one time, he trades in cotton where he faces so many obstacles in making a fortune out of cotton sale. Unfortunately, things do not work out for him and he goes completely broke which disheartens him and also results to a severe sickness. At this point, Livermore discovers that emotional responses in human being has a consequence in the way one conducts his business activities. At this time, Livermore’s debts rise to almost one million dollars but during the world war one, the market rises and Livermore tries his luck in the stock market again where he makes so much money to pay all that he owes people and still makes so much for himself (Lefevre & Markman, 2009). While in his struggles, Livermore realizes that there are some unpredictable situations that business men can not foresee and may be of adverse effects to the business for which he says that people in business should always be vigilant at all times. Livermore also warns about tips from stock markets arguing that they are set by stock manipulators to fool people who wish to partake in stock prediction. Later, he becomes a stock manipulator after a group of traders hire him to do this job. Majorly, Livermore believes that a successful trader should not rely on the information of other people but to make choices from within their self (Lefevre & Markman, 2009). What Interests me in the Book In this book, the thing that I find interesting is how Livermore tries his hand in different businesses without losing hope. It is rare in current times for someone to become completely bankrupt and to have debts that amount to millions of dollars like in Livermore’s case and still have the guts to try luck in the thing that made him or her go bankrupt. This shows that this trader was a true business man who does not lose hope that easily but one who is dedicated to attain success. Difference between Investment in the past and Investment in the Modern Times The narration in this book spans around the early twentieth century. During this period, people largely take part in the investment and prediction of the stock market. In case one’s predictions turns out to be right, the person gets some shares of the stock price. Similarly, if the predictions turn out to be wrong, a person loses. Some differences though occur when one compares the way people performed their investment during the early times and how people invest in the modern time. Currently, people do not put all their investment in stock prediction which may end up failing them but rather concentrates on different business activities that ensure them of financial security at all times. Relevance of the Book to my Investment Activities While reading the book, I become aware that it has some relevance with how I perceive the investment contest to be but unfortunately, I personally have not taken part in any investment activities so I cannot tell of any relevance. However, this book gives me so much insight on how to carry out myself in case I take part in investment activities. It teaches me the right time and place to put my investment and what to do and what to avoid while investing. Most importantly, this book teaches me to follow my decisions while carrying out any investment program. What I learn from the Comments by Paul Tudor Jones While going through Jones’ comments, I learn that it is important to hold tight in the business industry no matter the challenges or obstacles that one is likely to face in the course of his activities. In his comments, Jones mentions that, “It never was my thinking that made the big money for me. It always was my sitting. Got that? My sitting tight!” By this, Jones means that what one thinks to be the best way to conduct a business is not as important as the patience that one develops in quest for success. I also learn that one needs to try his luck in many activities as possible rather than depending on one activity to raise some income. Conclusion Reminiscences of a Stock Operator by Lefevre and Markman is one of the books that was written in the early years but still remain very applicable to tutors, investors, and students in the contemporary times. This book shows how one needs to plan his investment activities as well as offer guidance on how to approach the market industry as a business man. Through Livermore’s perseverance in his quest for success despite the challenges that he faces, one can learn to become patient with his business ventures no matter the situation because, nobody knows how the market industry will be in future. References Lefevre, E., & Markman, D. (2009). Reminiscences of a stock operator: With new commentary and insights on the life and times of Jesse Livermore. New York: Wiley Publishers. Read More